How investors evaluate the startups they invest in - the qualities you'll need to display to score investment, including you, your team, market, startup, traction, financials, investment terms, other investors, etc

1. What you’ll need to do
to convince me to invest
in your startup
Dave Moskovitz

3. http://sotw.nz/
$your_name

4. Agenda:
1. You and your team
2. Your market
3. Your startup
4. Your progress
5. Your financials
6. Your terms
7. Your other investors
8. My concerns

5. You – The CEO
Honest and trustworthy
No distractions
Domain experience
Can sell
Ready to grow the big vision
Coachable
Pragmatic
Know you’re not the final CEO

6. Your Team
Adaptable and resourceful
Smart, fast, quick learners
Multi-talented
Experienced, done great things
Fearless
Cohesive
Resilient
International exposure
Succession

7. Your market
Well-defined
International
Growing
Active
You know it inside-out
You know how to distribute
You understand competition
I can grasp it

8. Your startup
Solves identifiable pain
Big gutsy vision - articulated
Cool product or service
Capable of massive scale
Solid Intellectual Property
Corporate hygiene
It’s a business not a product!
Makes me say “Hell Yes!”

9. Your progress
What’s your trajectory?
What metrics? Vanity?
What have you learned?
Traction
Path to product
Path to revenue
Path to markets
Path to scale
Path to next round

10. Your [financial] plan
How will you spend the money?
What are the key assumptions?
How do they affect profit?
Can we speed things up?
What further investment req’d?
What does an exit look like?
What’s our ROI? Risk???
Can we make it a $1B company?

11. Your terms
Use SCIF standard docs
Equity? or convertible note?
Ords or prefs? Valuation cap?
Investment amount
Pre-money Valuation
Other conditions (anti-dilute, forced
sale, liquidation preference, IP ownership warranty,
nominated directors, founder remuneration/vesting etc)
Standard disclaimer applies – YMMV - OMGWTFBBQ

12. Your other investors
Who else have you approached?
Are they for real?
Who haven’t you approached?
What are their expectations?
Are we all aligned?
Can we get to critical mass?
Will SCIF match fund?
What else do you want from us?
Who’s next?

13. My concerns
I am not alone
I’m not a high roller
I can get spooked
I can get bored
I do get very busy
It’s still your company
Is it worth the risk?
Can I add signficant value?
How much work?